WEEKLY MEDIA UPDATE
03 March, 2014
(This document comprises news clips from various media in which Balmer Lawrie is mentioned, news
related to GOI and PSEs, and news from the verticals that we do business in. This will be e-mailed on
Balmer Lawrie in News
Sebi's PSU push could add up to Rs 2.74
lakh cr to MF money
Minimum investment for CPSE ETF
units is Rs 5,000
Only select PSUs can invest in MFs as per current rules
The Securities and Exchange Board of India’s
(Sebi) proposal to the government asking all
public sector companies to be allowed to invest in
mutual funds (MFs) could potentially add up to Rs
2.74 lakh crore to MF assets. The calculation is
based on the cash and bank balances of existing
public sector companies, currently not allowed to
invest in MFs.
“In case the base of the CPSEs (Central Public
Sector Enterprises) is expanded and all the CPSEs
are allowed to invest in MFs, such a provision
would lead to a substantial inflow in MFs,” says
the minutes of Sebi’s board meeting early this
The regulator noted the Public Enterprises Survey
2011-12 pegged the total cash and bank balance
Retail investors can participate in the
government's PSU stake sale programme by
investing a minimum of Rs 5,000 to buy units
of CPSE Exchange Traded Fund that comprises
shares of 10 blue-chip companies, including
ONGC, IOC and Coal India.
As per the draft offer document filed by the
Finance Ministry with market regulator Sebi,
individual investors can invest a minimum of Rs
5,000, while the maximum limit Rs 10 lakh.
The CPSE ETF is an open-ended fund and the
units would have a face value of Rs 10 per unit.
institutional buyers can invest in the scheme
with a minimum investment amount of Rs 10
lakhs, the document said. The ETF, which is
expected to hit the markets next month, could
of these 257 companies at Rs 2.74 lakh crore as
of March 31, 2012. The figures of the Association
of Mutual Funds in India peg the total assets
under management (AUM) of the sector at Rs 9.03
lakh crore at the end of January.
Business Standard - 25.02.2014
fetch government Rs 3,000 crore.
Business Standard - 26.02.2014
Government to sell 5 per cent stake in
Bhel to LIC; may get Rs 2,046 crore
Travel portals see three-fold increase
in flight bookings
The government will sell a 5 per cent stake in
power equipment manufacturer Bhel to stateowned Life Insurance Corporation of India,
fetching the exchequer about Rs 2,046 crore.
The discounts announced by airlines recently
have given a push to the aviation industry, with
big online travel portals witnessing a three
times increase in sales.
"Bhel disinvestment will happen this fiscal through
a block deal to LIC," Disinvestment Secretary Ravi
Mathur told reporters here. The Empowered Group
of Ministers headed by Finance Minister P
Chidambaram met today to decide on the timing
and mode of disinvestment in Bharat Heavy
Electricals Ltd (Bhel).
Economic Times - 28.02.2014
“We have witnessed up to three times increase
in booking on our website. Since discounts are
being offered by all airlines, bookings are
across carriers,” said Keyur Joshi, chief
operating officer at Makemytrip.com, one of
India’s largest travel portals.
Now, a website for hassle-free Tatkal
No railway refund for non-travellers
Now just log on to IRCTC Lite for hassle-free and
faster booking of your Tatkal ticket. This
additional facility, which opens 30 minutes before
commencement of Tatkal booking at 10 a.m., is
shorn of links and pop-ups to ensure better speed.
The Indian Railways Catering and Tourism
Corporation says it has removed all links, images,
advertisements, services and features, banners,
alerts and updates and floating tabs from the
home page. Facilities such as enquiries on refund
status and cancelled history have been kept out of
this section to reduce unnecessary hits, which
hamper transaction speed.
The Hindu - 25.02.2014
Railway takes U-turn, says refund can be
claimed after two hours of train
Taking a U-turn, the Indian Railways has said that
there will be no change in refund rules and
passengers on a confirmed ticket can avail refund
up to 50% of the fare provided the ticket is
The Indian Express - 26.02.2014
From March 1, passengers who do not
undertake journey after booking tickets will not
be paid any refund. Refund will also not be paid
to those who have booked tickets as a part of a
group and decide not to travel for any reason.
The new rules come into effect after the
railways modified its scheme on grant of refund
from public reservation system (PRS) on
cancellation of tickets.
Central Railway senior divisional commercial
confirmed that Railway Board vide a circular
issued on February 21 to all general managers
has intimated to implement the decision from
The Times of India - 26.02.2014
Govt should invest in building major
The government should invest in setting up 4-6
major ports in the next two decades, said the
report of an expert committee. "A key
government priority should be to invest in four
to six mega ports over the next 20 years," said
cancelled within 2 hours of the train departure.
Development Policy Committee.
On February 21, it had issued a circular that from
March 1, passengers not turning up or less
number of persons travelling in groups will not be
paid refund from public reservation system (PRS)
on cancellation of tickets.
However, on February 24, the railways said if the
ticket is presented for cancellation within two
hours of actual departure of train then refund will
The Times of India - 28.02.2014
Mega or major port is a port with two or more
berths and facilities and equipment capable of
discharging 1,00,000 tonnes of cargo per
month. The committee, headed by former
Reserve Bank Deputy Governor Rakesh Mohan,
recommended setting up two to three (major
ports) on each coast. An expert group should
be set up to undertake detailed studies to
identify potential location and modalities for
creation of mega ports, it added.
Business Standard - 28.02.2014
Outlook for logistics sector stable: India
Rail, coastal shipping will help cut
India Ratings has kept the outlook stable for the
logistics sector for the next fiscal as it expects a
moderate growth for the industry despite the
slowdown in the economy.
The need to bring down the high logistics costs
in India by diverting freight from road to rail
and coastal shipping was highlighted at a
conference on Multi-Modal Logistics organised
by the CII here on Wednesday.
“India Ratings & Research has assigned a stable
outlook to the logistics sector for FY15. This is
based on the strong likelihood of the sector
continuing to display overall moderate growth rate
despite a continued economic slowdown,” said the
Fitch group credit rating agency.
Experts pointed out that the Indian road
network was shouldering more than 60 per
cent of the total domestic freight movement,
Most segments of the industry have low leverage,
except the container freight station/inland
container depot segment, giving industry players
a degree of financial flexibility to weather the
slowdown, India Ratings said.
The Hindu - 24.02.2014
The Hindu Business Line - 26.02.2014
Govt panel proposes
Indian Oil Corporation (IOC) set to
buy 10% stake in Petronas' LNG
project for $900 mn
Vehicle owners could soon be asked to pay more
for environment. A green surcharge of Rs 2 on
petrol sold across the country and green cess on
existing personal vehicles at the rate of 4% of
recommendations of a government panel. The
panel has suggested levy of 7.5% urban transport
tax on purchase of new petrol cars and 20% in
case of diesel cars.
The investment in transport sector needs to be
increased from current 2.6% of GDP to about
3.3% in the 12th Five Year Plan (2012-17), says
The Times of India - 01.03.2014
Indian Oil Corporation (IOC) is set to buy a
10% stake in Malaysian firm Petronas' shale
gas and liquefied natural gas (LNG) projects in
British Columbia for $900 million, sources said.
At a conference in Singapore on Tuesday,
Shamsul Azhar Abbas, president and chief
executive of Petronas, said the company had
agreed to sell a 25% stake in its Canadian
shale gas assets to an Indian company and an
Asian gas buyer, reports said. The Malaysian
firm is planning to build an LNG terminal off
Canada's Pacific Coast for exporting natural gas
to Asian markets.
DNA - 26.02.2014
Nishi Vasudeva takes over as Hindustan
Petroleum Corp Ltd chief
D K Sarraf
Nishi Vasudeva today became the first woman to
head a blue-chip PSU when she took over as the
Chairman and Managing Director of Hindustan
Petroleum Corp Ltd (HPCL).
Dinesh K Sarraf on saturday took over as the
new Chairman and Managing Director of Oil
and Natural Gas Corp (ONGC), the nation's
most profitable company. Sarraf replaced
Sudhir Vasudeva, who was denied a postretirement one-year extension of service even
though Oil Minister M Veerappa Moily had
strongly pitched for it.
Vasudeva, who turns 58 this month, was Director
(Marketing) in HPCL before replacing Subir Roy
Choudhury as the head of the company.
Choudhury retired yesterday on attaining the
superannuation age of 60 years. Vasudeva, who
had created history in July 2011 when she became
the first women ever to make to the board of
cash-rich oil PSU, is also Vice President- Youth &
Gender, World Petroleum Council, the company
said in a statement here.
Economic Times - 01.03.2014
Prior to this, Sarraf was Managing Director of
ONGC's overseas arm, ONGC Videsh Ltd.
Credited with reviving OVL, which had gone
into a slumber following the disastrous
acquisition of Russia-focused Imperial Energy
in 2009, Sarraf brings to ONGC a no-nonsense
approach and an eye for detail.
Economic Times - 01.03.2014